THE CAUSES AND EFFECT OF UNEMPLOYMENT ON THE NIGERIAN ECONOMY (A CASE STUDY OF WARRI, DELTA STATE) Â
CHAPTER ONE
 INTRODUCTION
1.1Â Â BACKGROUND OF STUDY
There is little question that unemployment has been and continues to be one of the most serious and pervasive economic problem in the labour market. Low wages, discrimination, substandard working condition, types of labour market pathologies are all threats to the economic security and well being of significant members of workers, but few approach the impact of unemployment as case of both economic hardship and wasted resource.
The fact that
unemployment
has multiple causes and very disparate impacts on the workers who experience it lead to controversy about low serious social and economic problem unemployment is and what policies would be best to combat it (Bruce and Julie, 2000).
Unemployment is the difference between the working population of a nation or state and it’s total population (Ohajide, 2002).
The population of every economy is divided into two categories, the economically active population that is willing and able to work including those actively engage in the production of goods and services and those who are unemployed (Ojenagbor, 2009).
Unemployment is a problem that each society faces, and each society must find a way a beat it. Unemployment is one of the developmental problems that developing economy faces like Nigeria.
Unemployment is a stock concept. This is because the number and identities of people in the labour category are always changing and this affect the level of those in the market (Smith, 1999).
The rate of unemployment in developed countries is low comparatively when compared to developing countries. In Nigeria where education is gaining ground rapidly, the industrial sector is not growing at a high rate to accommodate school leavers.
In Warri - Delta State, the number of unemployed especially the youth is much more than the employed. This has poses some problems which may included the following;
1) Poverty: this is a situation where a population or section of a population is unable to meet only it’s bare subsistence essentials of food, clothing and shelter in order to maintain minimum level of living. It has been argued that inadequate access to basic infrastructure like water, health and education facilities transportation and even information will be important in defining poverty in a developing country like Nigeria (Olanrewaju, 1999).
2)Â Political violence: most especially youth turn to be political thugs who may harassed individuals during elections. Besides using the unemployed youths for political thuggry, they have been used as local militants to attack, bomb, vandalize and destroy oil pipelines, lives and property in the Niger Delta region of Nigeria (Gilbert, 2010).
3)Â Ethnic diversity: because there no much employment, those who are not from their ethnic group makes such people to suffer.
In developed countries or states, the above mentioned problems are few because it is only a small proportion of the population that are unemployed. The reverse is the case in Delta state particularly in Warri.
Therefore, sufficient employment in a particular or state such Delta State, social vices and other problems will be few. Government plays key roles in solving unemployment problems.
In this write up, the researcher shall do all the necessary findings and thereafter make his recommendation as well as conclusions.
1.2Â Â STATEMENT OF PROBLEM
Unemployment describes the conditions of people who are without job and the non utilization of labour in any productive activity for a reward in terms of wages, salaries or profits.
The stunted growth of most small scale businesses have resulted in workers that are thrown out of job and the businesses are prevented from short listing new workers.
The above situations have resulted to the following;
a)Â Â How does over dependent on wage employment affect the economy
b)Â Â Does lack of maintenance culture causes unemployment in an economy
c)Â Â Â Does skill affect the economy of the a nation.
d)Â Â Does unemployment have adverse effect on the economy.
In views of these stated problems and others not highlighted, the researcher is moved to carryout a qualitative investigation fro causes and affect of unemployment.
1.3Â Â OBJECTIVES OF STUDY
The essence of this write up is;
1)Â To ascertain the degree of unemployment in Nigeria and by implication Warri, Delta State.
2)Â To bring to the knowledge of government the cause and effects of unemployment in order for it to intensify their policies.
3)Â To proffer possible solution to the government, private organisations and individuals alike on how to wrestle this ugly trend to the ground.
4)Â To know how to react to the causes and effect of unemployment.
5)Â To adopts appropriate policies to tackle the causes and effect of unemployment.
1.4Â Â RESEARCH QUESTION
The following relevant research question will be used as a guide to carrying out this study.
a)Â How does lack of information leads to unemployment?
b)Â Does high rate of unemployment affect residents of Warri, Delta State?
c)Â Â Is recession a key causes of unemployment?
d)Â Does rationalization exercise increase the scope of unemployment?
e)Â Does unemployment have adverse effect on the economy?
1.5Â Â SIGNIFICANCE OF THE STUDY
A study of this nature is quite interesting especially with the situation in the country were our higher school of learning are turning out graduate on yearly basis only for them to swell up the army of the unemployed already on ground. This is as a result of lack of job opportunities.
This research work will be of immense benefits to Warri and other private organisation in areas of investment decisions.
This work is sincerely hope to offer and acceptable suggestion and solutions as well as recommendation to the unemployed.
Finally, it shall be a sort of document to the Delta State Polytechnic and other individuals to make references to.
1.6Â Â SCOPE OF THE STUDY
The topic per se is an interesting one that affects virtually all the local governments in Warri, Delta State. But, this research work is confined to Warri, Delta State significantly.
This borne out the desire of the researcher to present a sound and comprehensive work.
1.7Â Â LIMITATION OF THE STUDY
 The factor that poses hindrance on the conduct of this study are;
Ø Lack of sufficient time: to carry out the research work, the time that was available was too short to review literature.
Ø Lack of finance: there was no adequate finance to travel from one place to another to carry out the research finding and to review literature.
Ø Inadequate materials: there were no sufficient textbooks, journals and magazines in the school library to carry out the research work.
Ø Attitude of respondents: respondents where reluctant to reveal the true information about the unemployment effect on Warri, Delta State. Â
1.8Â Â DEFINITION OF TERMS
Unemployment: It is unemployed numbers of the economically active population who are without work including people who have lost their jobs and those who have voluntarily left work.
Rationalization: this is the re-organisation of enterprises in order to lessen or get rid of waster labour.
Commercialization: this is the re-organisation of enterprises wholly or partially owned by the government in which such enterprises.
Privatization: this is the transfer of government owned shareholding in designated enterprises to the private shareholders comprising individuals and corporate bodies.
Effects: change produced by an action or cause result outcome or an impression produced on people mind. The state of been operative.
Economy: this means strict control and prudent management of resources especially in a state.
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